Idaho local data guide

Which Idaho Cities Have a Local Option Sales Tax?

In Idaho, there is no blanket authority for cities to impose a general local option sales tax. Instead, state law limits this power to designated "resort cities," typically with populations under 10,000, that rely heavily on tourism. Implementation requires a 60% voter majority, meaning tax landscapes vary significantly by location.

Updated with grounded research as of 2026-09-06.

The short answer

Idaho does not have a general local option sales tax available to all municipalities. Only cities designated as 'resort cities'—generally those with populations of 10,000 or less that rely on tourism and recreation—are permitted by state law to impose specific local option non-property taxes.

Key facts

Population Limit
Generally restricted to cities with a population of 10,000 or less.
Voter Approval
Requires a 60% majority vote of the city's residents to pass.
Scope
Taxes can apply to retail sales, short-term lodging, or liquor-by-the-drink.

The 'Resort City' Classification

Under Idaho Code, not every municipality qualifies to levy a local option tax. The designation is specifically reserved for 'resort cities.' These are defined as cities that derive a significant portion of their economic livelihood from tourism and recreation. A key statutory requirement is that the city must generally have a population of 10,000 or fewer residents.

How Local Taxes Are Implemented

The process for establishing a local option tax is rigorous. It is not an administrative decision made solely by a city council. Instead, it must be put to a public vote. For a tax to be authorized, it must receive approval from at least 60% of the voters within that jurisdiction. This ensures that the tax is supported by a clear consensus of the local community.

Types of Local Taxes

When a resort city successfully passes a local option tax, it can target specific revenue streams. These commonly include:

Retail sales taxes on consumer goods.

Occupancy taxes on short-term lodging (hotels, motels, vacation rentals).

Liquor-by-the-drink taxes.

Common questions

Can I see a full list of cities that have these taxes?

Because individual cities may adopt, amend, or repeal these taxes through local ordinances, there is no static list that remains accurate indefinitely. The Idaho State Tax Commission serves as the official registry, and you should consult their documentation or the city clerk of the specific municipality you are researching.

Is this the same as an auditorium district tax?

No. Local option sales taxes for resort cities are distinct from other special taxing districts, such as public auditorium districts or other local improvement districts. These operate under different statutory authorities.

Related Idaho questions

  • What is the current Idaho state sales tax rate?
  • How does a city qualify as a 'resort city' in Idaho?
  • Are groceries taxed under Idaho's local option taxes?

Sources and verification